Canaccord Genuity starts Kistos at 'buy', highlights boost from Oman deal

7th Sep 2026 12:11

(Sharecast News) - Canaccord Genuity initiated coverage of Kistos with a 'buy' rating and a 360p price target on Monday, saying the AIM‑listed oil and gas group was set for a step‑change in scale once its acquisition of Omani production completes later this year.

The Canadian bank said Kistos had rapidly evolved from a start‑up into a diversified international producer with assets across the Netherlands, UK, Norway and soon Oman, supported by an experienced management team from RockRose Energy. It added that the shares looked "cheap", trading on an FY26 enterprise value-to-underlying earnings multiple of around 1.4x.

Canaccord Genuity described the Oman transaction as "transformative", with completion expected in Q326, and highlighted that the deal was forecast to double group output to more than 20,000 barrels of oil per day on a pro‑forma basis, while also significantly diversifying production away from the North Sea. Post‑completion, Oman was expected to account for roughly half of Kistos' production and a large share of its reserves and resources, with lighter capex requirements than its existing portfolio.

The broker said Kistos still saw growth potential in its current assets, including the Balder Next development in Norway and new drilling options in the UK, which could sustain production well into the next decade. It also highlighted plans to expand UK gas‑storage capacity by up to 60%, calling the midstream asset strategically important and undervalued by the market.

Canaccord noted Kistos' recent $300m Nordic bond issue had strengthened the balance sheet and pointed to "meaningful deleveraging potential", with net debt projected to fall from around $200m post‑Oman to roughly $115m by FY28. It also said the company could move into a net‑cash position before the end of the decade.

Reporting by Iain Gilbert at Sharecast.com